Why Do Most Franchisors Offer the Same Contract to All

question 41

Multiple Choice

Why do most franchisors offer the same contract to all franchisees?

• A) ensure cooperation
• B) minimize start-up costs
• C) encourage longer contracts
• D) provide negotiation flexibility
• E) avoid appearing discriminatory

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Definitions:

Cautious Decisions

Decisions made with careful consideration of potential risks and consequences to minimize the likelihood of adverse outcomes.

Group Polarization

Group polarization describes the phenomenon where a group's prevailing attitudes or beliefs become more extreme after group discussions or interactions.

Bystander Effect

This refers to the social psychology concept where the presence of bystanders reduces the probability of someone stepping forward to aid a person in need.

Groupthink

A phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.